Mexico
Click to download PDF: As per 1 January 2018, 2019, 2020
| EXPATRIATE AND EMPLOYER TAX COMPLIANCE AND ADVISORY | |
| Personal Income Tax Rates – Employment Income | Progressive tax rate: 1.92% – 35% |
| Tax Rate | |
| Tax period | Calendar year |
| Tax residency / Domicile according to domestic law | * If the individual spent more than 183 days continues or not in Mexico in a 12 month period. * The salary will be paid by or in the name of an employer that is non-resident in Mexico. * Center of vital interests in Mexico (economic and personal relations). |
| Tax registration | Required if acquired tax residency and also in some cases when the individual is no tax resident. An appointment needs to be set to the Tax Authorities for obtain the Mexican tax ID, password to use the electronic services of the Tax Authorities´s website and electronic signature that allows to file taxes electronically in México. |
| Employment income definition | Any income or benefit earned in cash or in kind and income determined by tax authorities on the basis of presumptions. Additionally, if a person covers the taxes on behalf of the taxpayer, the tax paid is considering income for the taxpayer. |
| Examples of tax exemption | None |
| Specific expatriate concession | None |
| Income of board members | Any remuneration is taxable and the tax withholding is 25% over the income received without any deduction. |
| Tax returns | Obligation to file a tax return not later than April 30th after the year end. |
| Tax payments | Obligation to file monthly tax payment every 17th after the month ends. |
| Tax on real estate property | |
| TAX TREATIES | |
| Employment income / income from board members | Taxable if source is a Mexican corporation. |
| INTERNATIONAL SOCIAL SECURITY | |
| Cross border employments | None |
| Exception under Art 16 of Reg. 883/2004 and Art 17 of Reg. 1408/71 |
None |
| Social Security Cost as % from gross salary and absolute amounts | 18% cost for the employer and 7% for the employee based on gross salary. |
| IMMIGRATION | |
| Work permit | It is necessary for any nationals without exception. |
| Visa | No Visa is necessary to enter Mexico. |
| Residency permits / registration certificate | This residency permits is allowed in long assignments. |
| Driving license | Not acceptable for any foreign countries, must apply for a Mexican driving license. |
| STOCK OPTION PLAN | Taxable at the moment of vesting. |
| ARTICLE 15 OF THE OECD MODEL | |
| 183 days | Total number of calendar days is calculated cumulatively during the calendar year (days of arrival and departure are both included in calculation). |
| Notion of employer | If a Mexican company hired directly the employee the tax is withhold by the employer and remit to tax authorities; at the end of the year a constancy of taxes paid is issue by the employer. When the individual doesn´t have any employer in Mexico, the individual needs to obtain a Mexican Tax ID and also has the obligation to calculate and remit the monthly and annual tax returns in Mexico. |
| Existence of a permanent establishment | If the individual sign contracts besides the foreign resident can be trigger a permanente establishment. |
 |
Omar Garcia |
| Tax Partner | |
| Send Email | |
| Direct line: (52) 81- 8100-9848 Ext 118 | |
| Address: Ave. Humberto Junco Voigt 2307 Torre II Torre Martel, San Pedro Garza García, Nuevo León, Mexico, C.P. 66269 | |
| www.mazars.mx |